Answer:
$1,875
Step-by-step explanation:
Given:
1. The total interest paid after one year is $624.
2. The interest rates are 7% for the bank, 5% for his mom, and 6% for his friend.
3. The amount borrowed from his mom exceeds the amount borrowed from his friend by $200.
We can set up the following equations:
1. For the total interest paid:
0.07B + 0.05M + 0.06F = 624
2. For the difference between the amounts borrowed from mom and friend:
M = F + 200
And we know that the total borrowed is $10,000:
B + M + F = 10000
We'll solve this system of equations step by step.
Substitute M=F+200 into the total borrowed equation:
B+(F+200)+F=10000
B+2F+200=10000
B+2F=9800 ...(1)
Now we can substitute this value of M into the equation for the total interest paid:
0.07B + 0.05 (F+200) + 0.06F = 624
0.07B + 0.05F + 10 + 0.06F= 624
0.07B + 0.11F = 614
Now we can use equation (1) to solve for
0.07B + 0.11 (4900−B) = 614
0.07B + 539 − 0.11B = 614
−0.04B + 539 = 614
−0.04B = 75
B = 75/-0.04
B=1875
So, Edgar borrowed $1,875 from the bank.